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Sorry Stephen; I just now saw your post. To convert TLT to an equivalent holding in TMF, multiply TLT times 33.33%. To convert EDV to an equivalent TMF holding, multiply EDV times 50.00%. In either case, the resulting cash position can be held for a more conservative play, or reinvested to your desired level to create a leveraged position. Frank gives the percentages for fully reinvesting all of the cash in his comments.
Hello….
I invest in four strategies across six accounts. To simplify my trading, I convert all signals involving TLT and EDV to lesser $ amounts of TMF plus cash. I believe I am maintaining the proper hedge and leverage ratios while at the same time freeing up cash for dry powder and/or additional investment activity. It seems like a win-win situation. Am I missing something and is there a downside to this technique?
Thank you.
